Minutes; Redevelopment; April 2010

City of Evansville
Redevelopment Authority

Wednesday, April 14, 2010, 6:30 pm
City Hall, 31 S. Madison St., Evansville, Wisconsin

MINUTES

I. Call to Order. The meeting was called to order at 6:30 pm by Chair John Decker.

II. Roll Call. Present: John Decker, Chris Eager, Betsy Ahner (arrived at 6:45), Tony Wyse, Barb Jacobson and Tom Calley. Absent: Roger Roth. Also present: City Administrator Dan Wietecha.

III. Approve Agenda. Calley made a motion, seconded by Jacobson, to approve the agenda. Motion approved unanimously.

IV. Minutes of July 7, 2009, Meeting. Wyse made a motion, seconded by Jacobson, to waive the reading of and to approve the minutes as presented. Motion approved unanimously.

V. TID #5 Audit. Wietecha said the statutory audit for Tax Increment District #5 had been completed through December 31, 2009. Except for the East Main Street Bridge, all infrastructure items identified in the September 2005 project plan have been completed. A comparison of actual expenditures versus the project plan leaves some $400,000 available for additional projects; the $85,000 budgeted for the bridge would reduce this.

The district has $3.9 million in debt to be repaid by tax increment collections over the life of the district, expiring in 2031. At a current collection around $150,000 per year, the debt would not be fully paid until 2035. Appreciation of the value of properties throughout the district would increase the amount collected in each year and accelerate the repayment. Such appreciation is anticipated over the life of the district, especially with the improvements to the downtown infrastructure, but is difficult to predict with the current real estate market.

Wietecha noted that project plan could be modified in the future. He emphasized that the limited financing available requires any project undertaken must be a priority. Further, any direct assistance to an individual business should continue to have safeguards to ensure collection of the full amount of the loan even if tax increments fall short.

VI. Rehabilitation of 1-3 East Main Street. Wietecha said the city assessor had estimated the completed project being valued at $178,000 to $183,000. Using past benchmarks of the increase in value, this could translate into $3,000 to $5,000 in assistance to the project. Using past benchmarks of the construction cost, this could translate into $13,000 in assistance to the project.

The commissioners noted that this is a critical property to the downtown. It is the only corner at the Main and Madison intersection remaining to be refurbished. The architect’s renderings for the project look very attractive and a great improvement.

Wietecha indicated that a development agreement would follow the same format and requirements as other recent development agreements. Jacobson made a motion, seconded by Wyse, to recommend to Common Council approval of a Development Agreement with Jan Davis to provide a $13,000 loan amortized to pay off in 2031 for rehabilitation of 1 and 3 East Main Street. Motion approved unanimously on a roll call vote.

VII. Adjournment. With no further business, the meeting adjourned at 7:10 pm.